Latest news with #Datadog
Yahoo
2 days ago
- Business
- Yahoo
Datadog, Inc. (DDOG): A Bull Case Theory
We came across a bullish thesis on Datadog, Inc. (DDOG) on @bigbullcap on X (Twitter). In this article, we will summarize the bulls' thesis on DDOG. Datadog, Inc. (DDOG)'s share was trading at $114.46 as of 23rd May. DDOG's trailing and forward P/E were 243.53 and 60.61 respectively according to Yahoo Finance. A computer engineer developing a secure cloud infrastructure solution. Datadog (DDOG) continues to distinguish itself within the observability space through its consistent ability to innovate and scale across a growing suite of product offerings. According to Bank of America, one of Datadog's most compelling attributes is its multi-product engine, which allows the company to layer new capabilities on top of its core infrastructure monitoring platform. While management does not disclose precise annual recurring revenue (ARR) figures for each category, the firm has provided enough commentary over time to piece together a detailed breakdown across key areas including infrastructure monitoring, application performance monitoring (APM), log analytics, security, and emerging products. BofA's granular analysis of these segments reveals a strong and diverse foundation of ARR contributors, suggesting that Datadog is less reliant on any single revenue stream and has multiple growth levers it can activate. Importantly, this product expansion has enabled deeper penetration across customer accounts, increasing net retention and stickiness. The firm believes this diversified growth profile supports a bullish outlook, particularly with potential upside to the company's 2025 revenue guidance. In refining its model, BofA notes that underlying trends in product attach rates and adoption trajectories for security and logs provide further confidence in acceleration potential. Given this backdrop and Datadog's continued execution in delivering value across its observability and security portfolios, BofA reiterates its Buy rating and raises its conviction in the $170 price target. The path to upside is paved with incremental product adoption, operational leverage, and a robust innovation pipeline, reinforcing DDOG as a high-quality compounder in enterprise software. Previously, we have covered Datadog, Inc. (DDOG) in November 2024 wherein we summarized a bearish thesis by Elliot on Substack. Since then, the stock is down 26%. However, the stock is expected give a turnaround and is already up 21.02% since April 2025. Datadog, Inc. (DDOG) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 83 hedge fund portfolios held DDOG at the end of the fourth quarter which was 71 in the previous quarter. While we acknowledge the risk and potential of DDOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DDOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Strong AI Boosts Datadog, Inc. (NASDAQ:DDOG) Q1 Results, But BMO Lowers Target on Macro Uncertainty
BMO Capital recently lowered the price target on Datadog, Inc. (NASDAQ:DDOG) to $130 from $152 and kept an Outperform rating on the shares. DDOG provides a monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud in North America and internationally. The company reported a mostly solid March quarter, highlighted by a roughly 3% beat to the firm's and Wall Street's consensus estimates and strong AI Native contribution to ARR, the analyst tells investors in a research note. The advisory added that, consistent with its past writings, demand metrics have greater stock/multiple impact than margin and, given the weaker macro backdrop and compressed software valuations, it is lowering its price target. A close-up of a laptop with a software engineer coding on the monitor. While disclosing first quarter earnings, the firm provided guidance for Q2 revenue between $787 million and $791 million, representing 22%-23% year-over-year growth, and non-GAAP net income per share between $0.40 and $0.42. For fiscal year 2025, revenue is expected to be in the range of $3.215 billion to $3.235 billion, with an operating income of $625 million to $645 million and non-GAAP net income per share of $1.67 to $1.71. The company raised its full-year revenue guidance by $40 million compared to previous estimates due to strong performance in Q1 and visibility into Q2. While we acknowledge the potential of DDOG, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DDOG and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
PagerDuty (PD) Reports Q1: Everything You Need To Know Ahead Of Earnings
IT incident response platform PagerDuty (NYSE:PD) will be announcing earnings results tomorrow after market hours. Here's what to expect. PagerDuty beat analysts' revenue expectations by 1.4% last quarter, reporting revenues of $121.4 million, up 9.3% year on year. It was a mixed quarter for the company, with accelerating customer growth but EPS guidance for next quarter missing analysts' expectations significantly. It added 64 customers to reach a total of 15,114. Is PagerDuty a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting PagerDuty's revenue to grow 7.2% year on year to $119.2 million, in line with the 7.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PagerDuty has missed Wall Street's revenue estimates four times over the last two years. Looking at PagerDuty's peers in the software development segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Dynatrace delivered year-on-year revenue growth of 16.9%, beating analysts' expectations by 2.4%, and Datadog reported revenues up 24.6%, topping estimates by 2.8%. Dynatrace traded up 5.1% following the results while Datadog's stock price was unchanged. Read our full analysis of Dynatrace's results here and Datadog's results here. There has been positive sentiment among investors in the software development segment, with share prices up 8.5% on average over the last month. PagerDuty is up 3% during the same time and is heading into earnings with an average analyst price target of $20 (compared to the current share price of $16.20). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
2 AI Stocks to Buy Hand Over Fist Right Now
Growth stocks have been on a roller-coaster ride thus far in 2025. These two beaten-down growth stocks appear to be attractive plays in the era of AI. 10 stocks we like better than Datadog › Growth stocks have had an up-and-down year so far. Despite bullish projections heading into 2025, President Donald Trump's global trade reset has weighed on markets, with the benchmark S&P 500 close to flat year to date, despite a recent marketwide trend reversal. However, savvy investors know that marketwide pullbacks are often the best times to load up on high-quality names. With that in mind, here is a nuts-and-bolts overview of two currently unloved growth stocks that appear ripe to deliver stronger performances from here. Datadog (NASDAQ: DDOG) is a cloud observability platform that helps companies monitor and optimize their entire technology infrastructure. Think of its software as a control tower for modern businesses, providing real-time visibility into servers, databases, applications, and services across cloud environments. When something goes wrong in a company's digital operations, Datadog helps teams quickly identify and resolve the issue before it affects customers. The company has become an essential service provider for many enterprises navigating their digital transformations. Over 30,500 customers now rely on Datadog's platform, and the business is thriving. In the first quarter, revenue surged 25% year over year to $762 million, beating analysts' consensus expectation. Though the stock has lost 7.4% of its value over the past 12 months, the underlying business momentum remains remarkably strong. What makes Datadog particularly compelling is its rapidly expanding opportunity in artificial intelligence (AI) observability and data quality monitoring. With the increasing adoption of AI, companies will need more sophisticated tools to monitor AI-generated code and workloads. Datadog's AI-native customer cohort already represents 8.5% of its annual recurring revenue, up from just 3.5% a year ago, and this segment is growing quickly. Still, Datadog stock isn't cheap. Currently, the cloud observability specialist's shares trade at a whopping 60 times forward earnings. For comparison, the S&P 500 presently trades at around 21 times forward earnings. However, with top-line growth expected to approach 40% throughout 2025 and 2026, per Wall Street's consensus estimates, Datadog's premium valuation isn't surprising. After all, the company is evolving into a cornerstone of the broader AI revolution -- and that megatrend is an unstoppable force that's expected to generate trillions in economic value in the years ahead. Uranium Energy (NYSEMKT: UEC) (aka UEC) is a uranium mining company with three hub-and-spoke platforms in southern Texas and Wyoming. The company extracts uranium using in-situ recovery (ISR), a low-cost method that uses chemicals to dissolve the uranium underground; the resulting solution is then pumped to the surface, where the minerals are extracted from it. As the U.S. moves to secure its nuclear fuel supply chain, UEC is positioned to become a critical domestic supplier. The investment case for Uranium Energy is centered on the surging electricity demand from the nation's growing numbers of AI data centers, which require reliable baseload power that renewables can't consistently provide without battery storage solutions. This situation is driving a nuclear renaissance, with tech giants like Microsoft and Alphabet signing deals with utilities to restart shuttered nuclear reactors and build new ones. Recent policy developments have supercharged UEC's prospects -- President Trump's executive orders invoked the Defense Production Act to reduce U.S. dependence on foreign uranium and streamline nuclear reactor construction. Though Uranium Energy's shares are down by about 11.2% over the past 12 months, the company's strategic importance has never been clearer. The main concern for investors here will be valuation. UEC stock trades at 178 times expected forward earnings, a massive premium to the S&P 500's 21 multiple. However, with U.S. power consumption expected to hit record highs in 2025 and 2026, and with domestic uranium production still far below demand, UEC's scarcity value may not only justify that price but drive a significant rally in the months ahead. As one of the few production-ready domestic uranium suppliers, UEC stands to benefit directly from America's nuclear resurgence. That's a potent catalyst. Before you buy stock in Datadog, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Datadog wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. George Budwell has positions in Microsoft. The Motley Fool has positions in and recommends Alphabet, Datadog, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 2 AI Stocks to Buy Hand Over Fist Right Now was originally published by The Motley Fool Sign in to access your portfolio
Forbes
5 days ago
- Business
- Forbes
Palantir: Too High A Price?
Palantir Technologies Inc. (NYSE: PLTR) has exhibited remarkable stock market performance over the last year, fueled by an increase in demand for its AI-powered platforms in both government and commercial sectors. As of May 24, 2025, PLTR shares finished at $123.31 – marking a 63% increase year-to-date and an impressive 400+% rise over the past year. In just the past month, the stock surged by more than 40%, highlighting investor excitement regarding the company's AI-driven capabilities. Palantir reported a 36% year-over-year revenue increase in Q4 2024, reaching $828 million, and has projected full-year 2025 revenues to fall between $3.74 billion and $3.76 billion. Although the company's revenue growth and market momentum are undeniably robust, concerns about its valuation persist. When contrasted with its peers, Palantir's superior performance becomes even more pronounced. Tyler Technologies achieved a modest 12% year-to-date gain and a 20% increase over the past year, thanks to stable demand in public-sector software. Verint Systems has seen a decline of approximately 15% YTD and 25% over the past year due to scaling difficulties. Datadog, a formidable competitor in the cloud monitoring market, has risen 28% YTD and 45% over 12 months, while Alteryx has faced challenges, with its stock dropping 40% year-to-date and more than 60% over the year. In contrast, Palantir's nearly parabolic rise reflects the market's optimistic outlook on its AI potential – but also raises questions about sustainability. In this comprehensive evaluation, we explore whether one should Buy or Fear Palantir Technologies stock. That being said, if you are looking for upside with less volatility than from individual stocks, the Trefis High Quality portfolio offers an alternative, having outperformed the S&P 500 and generated returns exceeding 91% since its inception. One of the most evident warning signs regarding Palantir stock is its valuation. With a price-to-sales (P/S) ratio of 101.5 (in comparison to the S&P 500's average of only 2.8), PLTR is demanding a valuation premium that few companies can sustain over the long term. Investors are essentially paying over 100 times current revenues – a benchmark that suggests not only continued growth but nearly flawless execution. Our thorough examination of PLTR's valuation details the various factors influencing its valuation. Palantir's growth narrative is undeniably captivating. Over the last three years, the company has expanded its top line at an average annual rate of 23%. In the past twelve months, revenues escalated by 28.8%, from $2.2 billion to $2.9 billion. Its latest quarterly figures were even more impressive, showcasing a 36% year-over-year increase. These statistics illustrate Palantir's increasing penetration into commercial sectors and its sustained strength in government contracts. Although profitability metrics are not as spectacular, they still suggest a solid operating foundation. The operating income for the past four quarters amounted to $310 million, reflecting a modest 10.8% margin. Nevertheless, the company generated a robust $1.2 billion in operating cash flow, leading to a 40.3% OCF margin. The net income for the period came to $462 million, resulting in a moderate 16.1% net income margin. This combination indicates healthy cash generation, although there is potential for enhancing operational efficiency. Palantir's balance sheet stands out as a significant strength. With only $239 million in debt and an enormous market cap of $273 billion, the company possesses a debt-to-equity ratio of just 0.1%. Additionally, it retains $5.2 billion in cash and equivalents – constituting 82.5% of its total $6.3 billion in assets. Such liquidity provides a robust buffer against market fluctuations and grants Palantir considerable strategic flexibility. Despite its numerous strengths, Palantir has faced a concerning history of underperformance during economic downturns. In the wake of the 2022 inflation crisis, the stock tumbled 84.6%, while the S&P 500 decreased by only 25.4%. Similarly, during the COVID-19 pandemic, Palantir fell 53.9%, compared to the broader index's 33.9% slump. Although the stock has since bounced back and exceeded its previous highs – achieving $130.18 in May 2025 – its past indicates susceptibility to macroeconomic challenges. There is no doubt that Palantir is performing admirably and has established a leading role in AI-driven analytics. Its growth trajectory, cash generation, and financial stability situate it among the stronger contenders in the industry. However, its valuation metrics remain exceedingly high by any historical or sector benchmark. While momentum investors might continue to ride this wave, those with a value-driven strategy may regard PLTR as relatively expensive at current prices. As always, prospective investors should consider the company's significant potential against the risks associated with purchasing a stock that commands a high price. Investing in an individual stock like Moderna can present risks. Conversely, the Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, boasts a history of comfortably outperforming the S&P 500 over the past four years. Why is that? Collectively, HQ Portfolio stocks delivered superior returns with reduced risk compared to the benchmark index, leading to a less turbulent investment experience, as evident in HQ Portfolio performance metrics.
